Durable Orders Rose in 1.0% in October as Business Spending Rebounded

US Durable goods orders increased 1.0% month-over-month in October (consensus +0.4%) following a downwardly revised 0.3% increase (from 0.4%) in September. Business spending rebounded, evidenced by a 0.7% increase in new orders for nondefense capital goods, excluding aircraft, which had declined 0.8% in September. Shipments of these orders were up 1.3% month-over-month in October, which will be a positive input for Q4 GDP forecasts.

Excluding transportation, durable goods orders rose 0.5% month-over-month following a downwardly revised 0.9% decline (from -0.5%) in September.

October 2022 US Durable Orders Highlights

  • US Durable Goods Orders rose 1.0% month-over-month in October (consensus +0.4%) following a downwardly revised 0.3% increase (from 0.4%) in September.
  • Excluding transportation, durable goods orders rose 0.5% month-over-month following a downwardly revised 0.9% decline (from -0.5%) in September.
  • New orders for primary metals decreased 0.1% month-over-month after declining 2.2% in September.
  • New orders for machinery rose 1.5% month-over-month following a 0.4% decline in September.
  • New orders for fabricated metal products jumped 0.1% month-over-month after declining 1.2% in September.
  • New orders for transportation equipment increased 2.1% month-over-month on top of a 2.5% increase in September, with new orders for motor vehicles up 0.6% and new orders for nondefense aircraft and parts up 7.4%.
United States Durable Goods Orders

Unfilled Orders

Unfilled orders for manufactured durable goods in October, up twenty-six consecutive months, increased
$7.0 billion or 0.6 percent to $1,144.3 billion. This followed a 0.5 percent September increase.
Transportation equipment, up twenty of the last twenty-one months, led the increase, $6.9 billion or 1.0
percent to $671.1 billion.

Inventories

Inventories of manufactured durable goods in October, up twenty-one consecutive months, increased $0.9 billion or 0.2 percent to $489.5 billion. This followed a 0.2 percent September increase. Machinery, up
twenty-four consecutive months, drove the increase, $0.9 billion or 1.1 percent to $86.6 billion.

Source: US Census Bureau

From The TradersCommunity News Desk